Gen Digital (GEN) Soars 5.6%: Is Further Upside Left in the Stock?

Gen Digital GEN shares ended the last trading session 5.6% higher at $22.02. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 30.6% loss over the past four weeks.

The optimism surrounding the stock can be attributed to strong momentum in Gen Digital’s Trust-Based Solutions, with bookings rising 25% year over year in the first quarter of fiscal 2027 and Engine’s annual revenue run rate surpassing $500 million. Further, the recent launch of Savvy’s insurance marketplace for AI agents expands Engine’s reach into AI-driven financial services and creates an additional growth opportunity for Gen Digital.

This security software maker is expected to post quarterly earnings of $0.72 per share in its upcoming report, which represents a year-over-year change of +16.1%. Revenues are expected to be $1.33 billion, up 9.4% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Gen Digital, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on GEN going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Gen Digital is a member of the Zacks Technology Services industry. One other stock in the same industry, Coherent COHR, finished the last trading session 1.5% lower at $287.81. COHR has returned 7.4% over the past month.

Coherent's consensus EPS estimate for the upcoming report has changed +0.2% over the past month to $1.97. Compared to the company's year-ago EPS, this represents a change of +69.8%. Coherent currently boasts a Zacks Rank of #2 (Buy).

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This article originally published on Zacks Investment Research (zacks.com).

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